Allegations of an extramarital affair were purportedly included in a dirt file on former NSW police and transport minister David Elliott prepared by a former Liberal apparatchik.
The "David Elliott Shit Sheet" document was allegedly emailed to Liberal Party-affiliated lobbyist Jeremy Greenwood, the commission heard.
In his second day in the Independent Commission Against Corruption witness box, Dylan Whitelaw admitted there could be a connection between the detrimental dossier and fugitive property developer Jean Nassif.
Counsel assisting Juliet Curtin outlined how the Sydney property tycoon worked closely with the Reformers, a conservative Christian faction within the NSW Liberals, to grow his business empire in the city's northwest.
"I want to suggest to you ... this document was prepared at the instruction of Mr Greenwood by you to further certain interests Mr Nassif had," Ms Curtin asked on Wednesday.
"I had no idea at the time," Mr Whitelaw replied.
"It would appear to me just standard factional warfare - on reflection, absolutely, that's what it appears to be."
Mr Elliott, who was part of a rival centre-right faction, rejected all the accusations made by "the young boy, Dylan, and his colleagues on the religious right of the Liberal Party".
"As most of Sydney knows, I'm a devoted husband of 30 years to a beautiful woman who doesn't deserve to be treated like this by the party she has sacrificed so much for," he said in a statement to the Sydney Morning Herald.
Mr Elliott retired from politics in 2023 after his seat was abolished and factional fights thwarted a move to a neighbouring electorate in northwest Sydney.
Operation Rosny is investigating alleged illicit political donations and branch-stacking, spearheaded by several players including brothers of former premier Dominic Perrottet.
Expletive-filled phone calls of Nassif talking to associates vowing to personally target Mr Elliott were played to the commission on Monday.
A sub-heading in the dirt file referred to strong criticisms the Greens' David Shoebridge made about the then-state minister during December 2020 budget estimates.
The now-federal senator, who was sitting in the NSW upper house at the time, took Mr Elliott to task for firing a submachine gun at a rifle range for prison officers.
Senator Shoebridge said he was dismayed at the factional warfare on display at the corruption inquiry.
"The more I see of this lot, the less respect I have for them," he told AAP on Wednesday.
"Instead of trying to make the state better or the nation run better, these Liberals have been busy gathering dirt files to take down their members."
The revelations follow claims by former NSW Catholic Schools boss Dallas McInerney that now-federal Liberal leader Angus Taylor agreed to make a series of payments to the Reformers.
"I want to shake down Angus for 10K," Mr McInerney wrote in a message aired at the inquiry on Tuesday.
Mr Taylor, who is not under investigation by the corruption watchdog, on Wednesday denied making donations to the ultra-conservative faction.
Three central allegations of corrupt conduct are being investigated by the inquiry, driven by "the confluence of personal greed and political ambitions".
At the centre of them is Nassif, pursued by NSW Police after a two-year fraud investigation while believed to be living in Lebanon.
A warrant has been issued for his arrest, while 57 companies linked with his company Toplace are in administration.Â
The inquiry resumes on Thursday.
6°C